XXVII Report LBIE
Periodo 15 Settembre 2021 / 14 Aprile 2022
-LBIE’s distributions to the Shareholder Payment of the fourth preferred equity distribution, totalling £93m, was made on 14 October 2021. To-date, this brings total distributions to the Shareholder to £337m.
-This report and future updates
The next formal progress report to creditors will be in
approximately 6 months’ time and will be posted to the LBIE
website on or before 14 October 2022. It is the Administrators
intention to make an application to the UK High Court to extend
the administration in the next Reporting period. An update with
regards to the extension will be provided to creditors in our next
formal progress report.
-AGFP litigation
During the period there was a significant amount of preparation
for trial. The trial formally commenced on 18 October 2021 and
lasted for 5 weeks in front of Justice Crane in the New York
Supreme Court, significantly longer than the initially anticipated 2
weeks. The entire trial was broadcast publicly for its full duration.
A subsequent evidentiary hearing took place on 28 February
2022 at which time Justice Crane handed down a number of
decisions about what evidence could (and could not) be relied
upon within subsequent trial briefs even if this evidence was
heard at trial. At the same time the Judge concluded the “burden
of proof” was with LBIE with respect to its affirmative claims, and
with AGFP with respect to AGFP’s counterclaims.
LBIE’s trial brief is now in the process of being prepared, due for
initial exchange on 22 April 2022 with replies to be shared on 21
June 2022. In turn there is expected to be a Closing Hearing in
front of the Judge. The date for this is not yet known however
Justice Crane reiterated her intention to hand down her verdict
by November this year
-Outstanding matters and exit from Administration
Progress continues to be made towards reaching the point at
which the Administration can be concluded. However, there
remain a handful of important ongoing interactions with
counterparties and the courts (which have been impacted to a
greater or lesser extent by the Covid-19 situation with certain
matters taking longer to be resolved).
Over the course of LBIE's Administration,
the Administrators
have successfully returned over £23bn of custodied assets and
associated Client Money to clients under several consensually
agreed arrangements or on a bilateral basis. Therefore, the
Administrators have concluded that LBIE's FCA permissions are
no longer required and on 26 January 2022 the FCA confirmed
receipt of LBIE's application to cancel its regulatory permissions.
The FCA has 6 months by statute to act on the application which
could be extended to one year, if the application is deemed
incomplete.
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